Five-Month Current Account Deficit at SKK 6.7 Bln.

The deficit on the current account of Slovakia’s balance of payments reached SKK 6.7 billion at the end of May 2003, down SKK 29.3 billion y/y. The current account deficit resulted mostly from the trade-balance deficit of SKK 10.7 billion, however, it was SKK 25.1 billion lower than a year ago, the National Bank of Slovakia (NBS) informed SITA.

Volume of Central Bank’s Interventions at Mere EUR 20 Mln. in June

The National Bank of Slovakia (NBS) accepted a bid to buy a foreign currency in order to stop firming of the Slovak crown from a single commercial bank in June. The central bank bought EUR 20 million in the form of an individual transaction in early June, according to the NBS monetary report.

VUB to Float SKK 800 Mln. Mortgage-Backed Bond Issue on August 7

Vseobecna Uverova Banka (VUB) plans to float an issue of five-year mortgage-backed bonds, totaling SKK 800 million on August 7. The bank will offer the bonds to selected investors, whose number will not exceed 50. The security will bear a fixed coupon of 4.6 percent p.a. The issue price is 100 percent of the par value, which is SKK 1 million, according to data released by the bank.

Bratislava Public Transport Firm DPB Shows H1 Profit of SKK 11.6 Mln.

The public transport company in the Slovak capital DBP, a.s. closed the first half of this year with a preliminary profit of SKK 11.6 million. Economic director Viliam Majda informed SITA on Wednesday that the company originally expected to make the H1 loss of SKK 33.3 million. Six-month revenues of SKK 1.054 billion were 1.2 percent above the plan, while expenditures of SKK 1.043 billion were 4.7 percent lower than projected.

Sibamac with SKK 578 Mln. Construction Output over H1 2003

One of the biggest construction companies in Slovakia, Sibamac, a.s. Bratislava carried out construction works amounting to SKK 578 million in the first six moths of 2003. “ The construction output performed by our own employees accounted for SKK 256 million, what is a 5 percent increase compared with the same period of last year” said the economic director of the company, Miriam Janaciova.

Fifth Supplemental Pension Insurance Company not Registered yet

The Ministry of Labor and Social Affairs still has not inscribed the fifth supplemental pension insurance company, 1. Narodna Doplnkova Dochodkova Poistovna (DDP) in the register. Peter Stancek of Danubia Holding, one of its founders, told SITA that the ministry has asked them to complete the application by additional information on meeting of requirements for operation of supplemental pension insurance. The company will deliver all the requested documents to the ministry by the end of this week, explained Mr. Stancek.

VUB Wustenrot Earns a H1 Profit of SKK 43.4 Million

Housing construction savings bank VUB Wustenrot, a.s. earned a profit of SKK 43.4 million in the first half of this year, up from SKK 32.2 million earned during the previous year’s period. Its net interest income amounted to SKK 179.5 million and net revenues from commissions and fees stood at SKK 56.5 million. General operating costs reached SKK 115.6 million, the bank informed SITA.

UniBanka Earned SKK 151 Million in H1 2003

UniBanka, a.s., earned a profit of SKK 151 million during the first half of the year. Compared with the previous year’s period this translates into an improvement by 77.7 percent. The bank attributes the increase in its net profit mainly to the growth in net revenues from financial operations and slower increase of operating costs. Head of the bank’s public relations department Rudolf Galik provided this information. The balance sheet – total of the bank was SKK 37.784 billion, increasing 15.65 percent y/y.

EU Entry will Accelerate Liberalization of Slovakia’s Gas Market

Slovakia has to incorporate in its legislation a revised regulation of the European Union on common rules of the local gas market before its entry. The regulation will not only speed up liberalization of the natural gas market but it will also increase transparency of relations between market participants. According to Jan Petrovic from the department of energy sector policy at the Economy Ministry, the adoption of the common rules will help to better use advantages of the local market with natural gas. Mr. Petrovic pointed out higher efficiency in operating of systems, higher quality of services and stronger competitiveness. The regulation will come into force as of July 1, 2004.

Machinery Dubnica Reports H1 Profit Exceeding SKK 1.8 Million

Rubber processing equipment producer Machinery, a.s., Dubnica nad Vahom closed the first half of the year with a profit exceeding SKK 1.8 million. “During the first six months of 2003 the company reached sales for its own products and services of SKK 215.4 million,” economic director Vladimir Vrtel informed SITA, adding that the company plans to close the year with sales of almost SKK 435 million. Labor productivity calculated from added value is SKK 158,000, when the company has 425 people on its pay-roll. Exports accounted for 54.3 percent of total sales. The company exports its products especially to EU countries.

Istrobanka Reports SKK 47.73 Mln. Profit in H1 2003

Istrobanka, a.s. closed the first half of this year with a profit of SKK 47.73 million, compare with a SKK 50.5 million profit it reported for the same period of 2002. Net interest revenues of the bank reached SKK 412.9 million and net revenues from fees and commissions SKK 35.5 million in late June. Six-month general operating costs were at SKK 268.9 million, Istrobanka informed SITA.

Public Bus Transporter SAD Bratislava with H1 Profit of SKK 31.9 Mln.

Public bus transport company Slovenska Autobusova Doprava, a.s. (SAD) Bratislava earned a gross profit of SKK 31.9 million. Revenues of the company totaled SKK 338.8 million, of which revenues from passenger transport accounted for SKK 301.2 million. Total costs of the company were at SKK 306.9 million, economic director Ludovit Stiglic informed SITA.

PAS Sees Improvement in Slovak Business Environment over Q2 2003

A survey conducted by the Business Alliance of Slovakia (PAS) indicates that the business environment index (IPP) ended the second quarter of 2003 at 108.3 points, up 0.37 percent over the figure reported at the end of the first quarter in 2003. Thus the business environment has been improving gradually.

Construction Ministry Allocates SKK 99 Mln. for De Minimis Projects

In 2003, the Ministry of Construction and Regional Development will provide to 114 entities in 32 districts SKK 98.86 million within the de minimis aid program. The program secures continued support to districts with high unemployment and low living standard. The program is focused on creation of new jobs, the ministry’s spokeswoman Silvia Varagyova informed SITA. The financial aid will flow into districts in the regions of Kosice, Presov, Nitra and Banska Bystrica.

Insurer Ergo with H1 Profit at SKK 10.5 Mln.

Insurance company Ergo a.s. netted SKK 10.5 million over the first six months of this year. Written premiums represented SKK 544 million, up 9.5 percent from a year ago. Written premiums in life insurance accounted for SKK 344.6 million while this was SKK 200 million in non-life insurance. Written premiums in life insurance mounted by 3.1 percent y/y, while the growth in the non-life insurance segment reached 17.6 percent y/y.

Slovak Arm of CSOB Bank Nets SKK 122 Mln. in H1 2003

The Slovak arm of Czech CSOB bank closed the first half of this year with net earnings at SKK 122 million, compare with almost SKK 131 million it showed for the same period of the last year. Gross loans to clients went up 38.6 percent y/y to be at SKK 25.856 billion in late June. Client deposits reached SKK 40.266 billion in late June, the bank’s representatives informed SITA on Wednesday.

STOCK MARKET: VSZ and VUB Pushed SAX Index Up on Wednesday

In the middle of the trading week, firming ex-steel maker VSZ and VUB pushed the Slovak share index SAX up by 0.55 percent or 0.89 points to 162.6 points. Turnover on the Bratislava Stock Exchange (BCPB) increased moderately from SKK 235.1 million on Tuesday to over SKK 255 million on Wednesday. Shares were traded only at SKK 944,500.

FOREX MARKET: Slovak Crown Closes with no Gains towards Euro

The Slovak crown has not posted any gains on Wednesday towards its referential currency, the euro. At the beginning of the day, the improving mood on the neighboring markets has moved the Slovak currency from the opening 41.850/880 SKK/EUR to 41.760/790 SKK/EUR. However, the SKK subsequently returned to its morning level and stayed at it until the session closed. VUB bank dealer Ladislav Benedek informed SITA that local as well as foreign banking houses were active on the market midweek. The Slovak crown was calculated against the USD at 36.720/761 SKK/USD. The cross rate of the Slovak and Czech currencies was 1.3060/3080 SKK/CZK.

MONEY MARKET Still in Liquidity Surplus

Commercial banks focused on their central bank reserve accounts at the end of July. Since the banking sector reports liquidity surplus, Slovenska Sporitelna dealer Pavol Janosik expects that the banks would have no problems to meet minimum reserve requirement for July. “The liquidity excess on the market increased by almost SKK 5 billion on Wednesday, while a portion arrived from maturing sterilization deals of the central bank and another portion from the payment of the coupon of restructuring bonds,” said the dealer. According to him, also on Thursday the commercial banks would use one-day repo tenders of the National Bank of Slovakia (NBS) to sterilize their excess liquidity.

State Bonus Instead of Tax Relieves in Supplementary Pension Saving

Tax relieves for citizens who are involved in supplementary pension saving (DDS) should be replaced by state bonus starting 2004. According to the proposal tailored by the Ministry of Labor and Social Affairs, the bonus should reach 18 percent of the payments to the DDS fund, however it will be maximally 20 percent of the average monthly wage in the Slovak economy. State bonus should be added to private account of the contributors once a year. The ministry has already submitted the bill on supplementary pension saving to the interdepartmental discussion.